Different Types of Investors

Let me start off with a story. So the other day a friend of mine called me up asking me to help him solve a plumbing problem. He probably thought I was good at plumbing because I have been working on rain water harvesting and drip irrigation. Anyway, he tells me that there is a tap that was constantly leaking water. He tightened it fully, but the water still leaks. Asks me if I have a fix for his problem. I started off by giving the best possible advice like any friend would give. I told him to find a … Continue reading “Different Types of Investors”

Real Estate Investment vs Equity Investment

While you know my aversion to real estate investment in India, I don’t discourage anyone from investing in it. If you don’t mind the corruption related to property deals, you might make more than simply investing in equity and debt mutual funds. But before you decide which way to go, make some informed decisions. In this post I will try to simplify some calculations which can help you guide in the right direction. I will also mention some risks involved in each of those asset classes. Buying a property Lets take an example to make it easy. You will have … Continue reading “Real Estate Investment vs Equity Investment”

Are Index Funds Better Than Active Funds?

In the US, index investing is all the rage. John Bogle who started the first index fund, contends that an index fund beats almost all actively managed mutual funds (after accounting for fees) in the long run. But does it work in India? That was the experiment I set out to conduct in early 2012.   Disclaimer: Any mutual fund names discussed here are purely for the study of the experiment and not a recommendation. I may or may not have owned, or still own these funds at the time of writing this post.   What got me started? When I … Continue reading “Are Index Funds Better Than Active Funds?”